The maximum profit of a monopolist occurs
a. where AR equals MC.
b. at the lowest point of the MC curve.
c. where MR equals MC.
d. at the widest gap between AR and MC.
c. where MR equals MC.
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In the figure above, the allocatively efficient output of computers is
A) 2 million per year. B) 3 million per year. C) 4 million per year. D) the largest amount possible.
The flaw of the Real Business Cycle model is that it
A) assumes away output fluctuations. B) assumes complete wage rigidity. C) assumes unrealistic fooling of workers. D) requires procyclical wage movements and continuous labor market equilibrium.
The calculation of GDP does not account for the following:
a. Value of goods and services b. ?? c. ?? d. Value of the investment e. Both b and c
A monopolist maximizes profits by setting the quantity where:
A. marginal revenue is equal to marginal cost. B. marginal revenue is greater than marginal cost. C. marginal revenue is less than marginal cost. D. total revenue is as high as possible.